If you already have taxi or private hire insurance, you might be wondering:
Does Hire and Reward insurance automatically cover food delivery or parcel work as well?
The answer is: not always.
Whether you are covered depends on:
- The type of Hire and Reward policy you have
- The work you are licensed to do
- The terms and exclusions in your policy
It’s important to check carefully before carrying out any additional delivery work.
What Is Hire and Reward Insurance Designed For?
Hire and Reward insurance is designed to cover:
- Carrying passengers for payment
- Operating as a licensed taxi or private hire taxi driver
- Accepting fares legally under your licence
General UK motor insurance rules can be found here: www.gov.uk/vehicle-insurance
Taxi and private hire licensing guidance is available here: https://www.gov.uk/taxi-driver-licence
For more information about what exactly hire and reward insurance is, you can read our article explaining What is Hire and Reward Insurance and Who Needs it.
However, food delivery and parcel delivery are different types of commercial activity.
Is Food or Parcel Delivery the Same as Taxi Work?
No – food or parcel delivery is not the same as taxi work.
Although both involve earning money using your vehicle, they are treated differently by insurers.
Taxi work involves:
- Carrying passengers
- Operating under taxi or private hire licensing rules
- Complying with local authority conditions
Food and parcel delivery involves:
- Transporting goods rather than passengers
- Working for restaurants, supermarkets or courier platforms
- Operating under courier or goods-in-transit arrangements
Because the risks differ, insurers often rate and underwrite these activities separately.
Does Taxi Hire and Reward Insurance Automatically Include Delivery Work?
In many cases, no.
Some taxi policies:
- Only cover passenger transport
- Exclude courier or goods delivery
- Require an additional endorsement to cover food delivery
Other policies may include delivery work but only if it is clearly stated in your schedule.
You must check:
- Your policy wording
- The statement of insurance
- Any listed exclusions
If delivery work is not specifically included, you may not be insured for it.
What Happens If You Deliver Food Without the Right Cover?
If you carry out food or parcel delivery without appropriate insurance:
- Your insurer may refuse a claim
- Your policy could be cancelled
- You could be treated as uninsured
- Your vehicle could be seized
- Your taxi licence could be affected
Driving without valid insurance is a criminal offence.
Motor insurance legal requirements are explained here: www.gov.uk/vehicle-insurance
Do Licensing Authorities Allow Taxi Drivers to Do Delivery Work?
Licensing rules focus on passenger safety and compliance.
Taxi and private hire licensing standards are outlined here: www.gov.uk/government/publications/taxi-and-private-hire-vehicle-licensing-best-practice-guidance
Statutory taxi and private hire vehicle standards are available here: www.gov.uk/government/publications/statutory-taxi-and-private-hire-vehicle-standards
While licensing rules may not prevent you from doing delivery work, your insurance must still cover the activity.
Some councils may also require:
- Notification of additional commercial use
- Confirmation that insurance matches vehicle usage
You can find your local council here: www.gov.uk/find-local-council
In London, licensing is overseen by Transport for London (TfL): tfl.gov.uk/info-for/taxis-and-private-hire
What Type of Insurance Covers Delivery Work?
Food and parcel delivery usually require:
- Courier insurance
- Goods-in-transit cover
- Or a Hire and Reward policy that specifically includes delivery use
If you plan to combine:
- Taxi work
- Private hire bookings
- Food delivery
- Parcel delivery
You should inform your insurer clearly and confirm that all activities are included in writing.
Questions to Ask Your Insurer
Before accepting delivery work, consider asking:
- Does my policy cover food delivery?
- Does it cover parcel or courier work?
- Is there an additional premium?
- Are there mileage limits?
- Is goods-in-transit cover included?
Getting clarity in advance helps avoid gaps in protection.
Can I Switch Between Taxi and Delivery Work?
Some drivers switch between:
- Passenger transport
- App-based food delivery
- Courier platforms
However, switching between different types of work without appropriate cover may invalidate your insurance.
If your working pattern changes, you should:
- Inform your insurer.
- Check your policy schedule.
- Confirm any changes in writing.
Failing to disclose changes in vehicle use can affect future claims.
Summary
Hire and Reward insurance for taxi or private hire use does not automatically cover food delivery or parcel work.
Cover depends on:
- Your individual policy
- Whether delivery use is included
- Any endorsements or exclusions
Before carrying out additional delivery work, always check your insurance documents carefully and speak to your insurer if you are unsure.
With an Acorn taxi policy you are automatically covered for taxi jobs, food delivery and courier work. Click here to get a taxi quote online.